This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The rise of artificial intelligence (AI) has served as an unprecedented bellwether for technology stocks over the last three years. In particular, semiconductor stocks including Nvidia, Taiwan Semiconductor Manufacturing, and Broadcom were all ushered into the trillion-dollar club thanks to the AI revolution. 

As investment in AI infrastructure continues to unfold, I think it’s likely that chip stocks will remain sound investment choices. But as 2026 approaches, I see a different tech titan taking center stage: Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).

Let’s dig into how Alphabet has built an AI fortress poised to dominate the future. From there, I’ll explore the company’s valuation trends and make the case for why now is a great time to buy Alphabet stock hand over fist. 

It’s been a quiet three years for Alphabet…until now

The AI revolution kicked off almost exactly three years ago when OpenAI commercially launched ChatGPT. ChatGPT quickly captured the imaginations of people all over the world with its ability to answer virtually any question instantly.

The dramatic rise in popularity among large language models (LLMs) caused some on Wall Street to pose the idea that traditional search tools like Google were headed for doom. Think of the business stakes at hand here: Why would advertisers continue paying a premium on platforms like Google and YouTube when everyone’s attention was flocking to chatbots?

While Alphabet’s advertising business did show some signs of stalling, the company’s cash cow remained somewhat resilient. For a couple of years, revenue from Google and YouTube wasn’t as robust as it once was, but it also wasn’t plummeting at an alarming rate.

What many investors were overlooking, however, was Alphabet’s other ventures. At the beginning of the AI revolution, Google Cloud was operating at an annual revenue run rate of about $29 billion. Meanwhile, this segment of Alphabet’s business was unprofitable.

Fast forward to today, and Google Cloud is now on pace for more than $50 billion of annual sales while boasting positive operating income. What’s even more interesting is that Google Cloud has won major deals with both OpenAI and Anthropic — the two LLMs that were once seen as the ultimate existential threat to Google’s relevancy.

Besides the success of its cloud division, Alphabet has also successfully launched its own LLM — called Gemini. According to management, Gemini has over 650 million monthly active users (MAUs) while search queries are increasing threefold quarter over quarter.

Why 2026 could be epic for Gemini

For most of the AI revolution, I think the consensus view around Alphabet was one of uncertainty. While not everyone bought into the extinction of Google narrative, it’s fair to say that it took some time for Alphabet to prove its AI ambitions were bearing fruit.

One of the biggest catalysts the company has going into next year is an extension of Google Cloud through commercializing custom hardware. Specifically, Alphabet’s application-specific integrated circuits (ASICs), known as tensor processing units (TPUs), have seen some early traction with Apple and Anthropic.

While TPUs aren’t going to dethrone Nvidia’s GPU business anytime soon, I think Alphabet is on the cusp of unlocking a new wave of growth in the cloud infrastructure market that’s currently dominated by Amazon Web Services (AWS) and Microsoft Azure.

Alphabet stock could soar to new highs next year

As of this writing, Alphabet’s forward price to earnings (P/E) ratio is hovering around 28 — its highest level during the AI boom.

GOOGL PE Ratio (Forward) data by YCharts

Normally, I tend to stay away from momentum stocks. More times than not, by the time a company reaches a record high, it’s dicey to buy the premium and expect shares to move materially higher.

This is a rare instance where I think the opposite is true. Alphabet’s current price increase reflects two factors: An appreciation for the company’s current operating performance and a bullish outlook that Alphabet will keep up its strong performance.

Alphabet’s ecosystem — from search, cloud computing, consumer electronics, custom hardware, and more — is a major differentiator compared to its mega cap peers. The company has a unique flexibility stitched into its DNA — benefiting from AI across its various assets and subsidiaries during any market cycle. These dynamics position Alphabet as a particularly durable business for the long run.

As investments in AI infrastructure are expected to continue rising going into next year, I expect Alphabet to benefit from these tailwinds more so than any one singular chip designer or software developer.

With this in mind, I think Alphabet will continue to show signs of accelerating revenue and profit margin expansion across its entire business next year — which should lead to even more buying from shareholders. Against this backdrop, I see Alphabet as the best opportunity in the AI landscape as 2026 approaches. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post The best artificial intelligence (AI) stock to buy in 2026 (Hint: It’s not Nvidia) appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• Which AI chip stock is the better buy for 2026: Nvidia or Alphabet?
• Should you buy this “Magnificent Seven” stock before 2026?
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• Better (almost) $4 trillion AI stock to buy now: Microsoft or Alphabet
• Why the best-performing “Magnificent Seven” stock of 2025 is still a buy for 2026

Adam Spatacco has positions in Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Nextdc Ltd (ASX: NXT) shares are starting the week on a positive note.

In morning trade, the data centre operator’s shares are up 9% to $13.05.

Why is this ASX AI stock rising?

Investors have been bidding the ASX AI stock higher today after it released another update on its data centres.

As a reminder, on 1 December, NextDC revealed that a series of customer contract wins had taken its pro forma contracted utilisation to 316MW. This was an increase of 71MW or 29% since 30 June.

The good news for shareholders is that over the past three weeks, the company has won even more customer contracts, which has underpinned another sharp increase in contracted utilisation.

According to the release, the company’s pro forma contracted utilisation has increased by 96MW or 30% to 412MW since its last update on 1 December.

As a result of these customer contract wins, the ASX AI stock’s pro-forma forward order book has increased to 301MW.

Management advised that its pro-forma forward order book is expected to progressively convert to billings, revenue, and EBITDA over the period FY 2026 to FY 2029.

For now, its net revenue, underlying EBITDA, and capex guidance remains unchanged for FY 2026.

Should you invest?

While brokers have not had chance to respond to this update just yet, they were overwhelmingly bullish on this ASX AI stock.

For example, Ord Minnett recently put a buy rating and $20.50 price target on its shares. It said:

Ord Minnett notes NextDC had only guided to 50–100MW of contract wins for FY26, so the latest announcement, along with industry feedback highlighting strong demand from both western and eastern hyperscalers, bodes well for the full-year outcome. […] We have raised our target price on NextDC to $20.50 from $19.00 to incorporate our assumed value of the agreement with Open AI, although we have not yet changed our earnings estimates due to the lack of detail and operational timelines. We reiterate our Buy recommendation.

Over at Morgans, its analysts are equally bullish. They have a buy rating and $19.00 price target on NextDC’s shares. Earlier this month, the broker said:

NXT has announced that following recent customer contract wins, presumably including a large single customer contract win across multiple locations, its contracted utilisation has increased by 71MW to 316MW as at 1 December 2025. Further contract wins were, and remain in, our forecasts so this mostly underpins our expectations. However, we upgrade our capex assumptions and lift our FY27/28 EBITDA forecasts by 5%. Our target price remains $19 per share. The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to BUY from ACCUMULATE.

The post This ASX AI stock is jumping 9% on huge news appeared first on The Motley Fool Australia.

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• NEXTDC lifts contracted utilisation and order book in December update
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• Why ASX, CSL, Galan Lithium, and NextDC shares are dropping today

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Aurizon Holdings Ltd (ASX: AZJ) share price could be in focus today after the rail operator announced it will lodge a proposed ten-year Network access undertaking with the Queensland Competition Authority, aiming to provide long-term certainty for both Aurizon and its coal network customers.

What did Aurizon Holdings report?

• Lodgement of a ten-year Central Queensland Coal Network (CQCN) Access Undertaking, known as UT5+, to run from 1 July 2027 to 30 June 2037
• Revised agreement introduces a performance-linked Throughput Payment, incentivising efficient network operations
• New five-year rolling access agreements to improve customer rail capacity planning
• Revenue uplift for Aurizon Network relative to the existing UT5 methodology, with updated WACC parameters
• Enhanced revenue and inflation protection mechanisms, including an adjusted Take-or-Pay structure

What else do investors need to know?

The UT5+ access undertaking is the result of extensive negotiations, with support from customers representing 68% of contracted CQCN tonnages. This draft will extend and amend the current access regime, building on established processes while introducing rolling agreements and more flexible transfer provisions.

For Aurizon, the agreement is expected to deliver a revenue uplift via changes to depreciation and the introduction of the new Throughput Payment, which partially replaces the existing WACC uplift. The updated methodology will also bring forward future cash flows and reflect a more accurate cost of debt within WACC calculations.

UT5+ remains subject to QCA approval, so the final terms could still change after regulatory review.

What did Aurizon Holdings management say?

Andrew Harding, Managing Director & CEO said:

This agreement has been reached after many months of constructive engagement with our Network customers and the proposed UT5+ is being lodged eighteen months prior to expiry of the current undertaking. It provides regulatory certainty for many years to come and delivers a range of beneficial outcomes for all parties.

What’s next for Aurizon Holdings?

The next stage will involve review by the Queensland Competition Authority, which must approve the undertaking before implementation. If adopted, UT5+ would provide stability and transparency for network users through to 2037.

Aurizon is positioning itself for efficiency and operational improvements while responding to evolving customer and regulatory expectations. Investors can expect further updates as the QCA assessment progresses.

Aurizon Holdings share price snapshot

Over the past 12 months, Aurizon shares have risen 10%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Aurizon lodges new 10-year network access undertaking with QCA appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share with short interest of 23.9%, which is up week on week. Short sellers were celebrating last week after the uranium producer’s shares crashed following a very disappointing update on the Honeymoon Project.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest rise to 17.8%. Short sellers don’t appear to believe that this pizza chain operator’s performance is going to improve meaningfully in the near term.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.3%, which is up week on week again. This may have been driven by valuation concerns. Especially given its poor performance in the US, which was seen as a key growth driver.
• Paladin Energy Ltd (ASX: PDN) has short interest of 13.2%, which is up slightly week on week. This could be on the belief that nuclear power adoption won’t be as great and uranium prices won’t be as strong as some predict.
• IDP Education Ltd (ASX: IEL) has 11.6% of its shares held short, which is down week on week again. This language testing and student placement company is struggling with unfavourable student visa changes and tough trading conditions.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.5%, which is down slightly since last week. Short sellers aren’t giving up on this one despite its positive start to FY 2026 and the announcement of a key acquisition in the cruise market this month.
• PWR Holdings Ltd (ASX: PWH) has short interest of 11.3%, which is flat since last week. This motorsport products company has warned that FY 2026 could be another transitional year.
• IPH Ltd (ASX: IPH) has seen its short interest climb to 11.2%. Short sellers have been targeting this intellectual property services provider due to weak trading conditions.
• Polynovo Ltd (ASX: PNV) has short interest of 11.1%, which is down since last week. This medical device company’s shares trade on sky-high multiples and short sellers don’t appear to believe that this is justified.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.1%, which is up week on week. This biotechnology company has had a tough year with delays to FDA approvals, which have weighed on its growth outlook.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• Here’s the earnings forecast out to 2030 for Flight Centre shares

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, PWR Holdings, PolyNovo, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended PWR Holdings. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, IPH Ltd , PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Stockland Corporation Ltd (ASX: SGP) share price is in focus today after the company declared an estimated 1H26 distribution of 9.0 cents per ordinary stapled security. The distribution will be paid on 27 February 2026 to eligible investors.

What did Stockland report?

• Estimated distribution for 1H26: 9.0 cents per ordinary stapled security
• Record date: 31 December 2025
• Distribution payment date: 27 February 2026
• Distribution Reinvestment Plan continues, with a 1% discount for participants
• Details of the actual distribution and financial results to be released on 16 February 2026

What else do investors need to know?

Stockland’s Distribution Reinvestment Plan (DRP), which was introduced in November 2024, remains in effect for this period. Eligible securityholders can opt to receive their distribution as new stapled securities at a 1% discount to the market price, calculated over a 15-day trading period in January.

If you’d like to take up the DRP, make sure your election is registered by 5:00pm AEDT on 30 January 2026. The DRP documentation and frequently asked questions are available online at the Stockland Investor Centre for anyone needing further guidance.

What’s next for Stockland?

Stockland has flagged that its detailed 1H26 financial results, along with the confirmed distribution amount, will be released on 16 February 2026. Investors will want to keep an eye out for the full results to get a clearer view of the group’s operating performance.

Stockland remains committed to its long-term strategy of fostering connected communities and maintaining a strong presence in residential, retail, and logistics assets across Australia.

Stockland share price snapshot

Over the past 12 months, Stockland shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 5% over the same period.

View Original Announcement

The post Stockland announces estimated 1H26 distribution appeared first on The Motley Fool Australia.

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• Aurizon lodges new 10-year network access undertaking with QCA
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• Monadelphous wins $250m Rio Tinto contract: What it means for shareholders

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

When a stock starts stacking green lights, it pays to slow down and look both ways. With BlueScope Steel Ltd (ASX: BSL) shares, investors might be tempted to keep their foot firmly on the accelerator.

The $10.5 billion steel stock has quietly been doing the heavy lifting. At the time of writing, BlueScope Steel shares are trading hands at $23.58 apiece.

The ASX 200 stock is up 4.7% over the past month and a punchy 26% year to date, rewarding investors who backed the steelmaker while sentiment elsewhere wobbled.

More importantly, analysts think there’s fuel left in the tank.  

Why is the market warming to BlueScope now?

The revival of BlueScope Steel shares stems from several factors. Australian construction activity has strengthened, boosting demand for BlueScope’s coated and painted steel products, like Colorbond and Zincalume.

Add ongoing cost-reduction programs, efficiency gains, and a strategic push toward higher-margin premium steel products, and the market sees a company positioning itself more smartly within a cyclical industry.

Balance sheet strength adds another green tick. BlueScope has emerged from recent cycles leaner and more resilient, giving it room to invest, return capital to shareholders, and absorb volatility.

Steep energy and materials costs

That doesn’t mean the risks have vanished. BlueScope still faces steep energy and raw-material costs at home. The board of Blue Scope flagged this as a threat to the competitiveness of Australian manufacturing.

Its recent full-year profit collapse — down nearly 90% following an impairment on its US coated-products division — highlighted weaknesses in parts of its global portfolio. The company also continues to grapple with lower returns on equity compared with industry rivals, raising questions about capital efficiency.

Sensitive demand and lurking oversupply

Analysts, meanwhile, aren’t pretending the road ahead is risk-free. Steel demand remains sensitive to economic growth, energy costs can bite, and global oversupply is never far away.

Despite the headwinds, sentiment is improving. The steel producer has kept dividends stable, signalling confidence in the underlying business. Operationally, the company’s Australian steelmaking division remains a steady performer, while its move toward branded, value-added products gives it more pricing power than commodity steelmakers typically enjoy.

What do analysts think?

Analysts are generally upbeat, with most market watchers recommending BlueScope Steel shares as a buy or even a strong buy.

Several major brokers see further room for gains, with average 12-month price targets at $26.26 and some high-end estimates of $28. This implies an 18.7% upside at the current share price.

The post All systems go for BlueScope Steel shares appeared first on The Motley Fool Australia.

More reading

• Two ASX 200 stocks with buy recommendations from Ord Minnett
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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Champion Iron Ltd (ASX: CIA) share price is in focus after the company announced a cash tender offer to acquire Norwegian iron ore producer Rana Gruber for NOK 2,930 million (about US$289 million). The transaction is backed by financial commitments from La Caisse and Scotiabank, with 51% of Rana Gruber shareholders pre-accepting the offer.

What did Champion Iron report?

• Entered a conditional agreement to acquire 100% of Rana Gruber ASA at NOK 79 per share
• Transaction valued at approximately NOK 2,930 million (US$289 million)
• Financing includes a US$100 million private placement from La Caisse and a US$150 million term loan from Scotiabank
• Rana Gruber generated NOK 333.5 million (US$32.9 million) profit and NOK 592.3 million (US$58.4 million) EBITDA in the trailing four quarters
• Champion to fund acquisition through equity, debt, and existing cash
• Expected near-term accretive impact for Champion Iron shareholders

What else do investors need to know?

The deal brings a long-life asset in Norway to Champion Iron’s portfolio, expanding its high-grade iron ore offering and enhancing product and customer diversification, particularly in Europe. The production upgrade at Rana Gruber to 65% Fe iron ore concentrate positions both companies to target the green steel supply chain.

Champion expects to maintain its financial leverage ratios at closing, with all financing structured to avoid material impact on its balance sheet. Rana Gruber’s management will stay with the company, supporting a smooth transition and local community ties.

Regulatory approval is needed before the deal officially launches, with completion expected in the second quarter of 2026. Key shareholders and the board of Rana Gruber have recommended the offer.

What’s next for Champion Iron?

Champion will now move through the regulatory process, seeking approval of the offer document, with the acceptance period likely starting in late January 2026. If all goes to plan, Champion expects to complete the takeover by the second quarter of the 2026 calendar year.

The acquisition will add Rana Gruber’s high-grade and specialty iron ore output and European customer base to Champion’s operations, potentially setting up the company for long-term growth in the decarbonising steel sector. Champion will also continue developing its Canadian iron ore assets and pursue organic growth projects.

Champion Iron share price snapshot

Over the pas 12 months, Champion Iron shares have risen 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Champion Iron launches $289m Rana Gruber takeover: what shareholders need to know appeared first on The Motley Fool Australia.

More reading

• Aurizon lodges new 10-year network access undertaking with QCA
• Stockland announces estimated 1H26 distribution
• NEXTDC lifts contracted utilisation and order book in December update
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• Monadelphous wins $250m Rio Tinto contract: What it means for shareholders

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Electro Optic Systems Ltd (ASX: EOS) share price jumped sharply late last week, closing at $8.49 after rising almost 17% in a single session. The move followed two announcements, but I don’t think the market’s reaction was just about what was released.

EOS has moved into a very different phase of its development. The business is no longer defined by one-off contract wins or early-stage potential. It now carries a growing order book and a deep pipeline of active opportunities.

If even part of that pipeline converts, the scale of future contracts could materially exceed what EOS has delivered in the past.

The backlog is growing, but the pipeline is the real story

EOS already has a sizeable order book that is expected to convert into revenue through 2026 and 2027. That alone gives the business far more visibility than it had even a year ago.

But what makes the current setup so interesting is the depth of work progressing behind the scenes.

The company’s latest market development update outlines a wide range of opportunities moving through various stages, from early discussions to advanced negotiations.

It’s important to note that in defence, this is exactly how large programs evolve. They move gradually from demonstrations to evaluations to conditional agreements and finally to signed orders. And EOS now has meaningful exposure at every stage of that process.

Multiple paths to growth across regions and products

One of the biggest changes in the EOS story is diversification. The business is no longer reliant on a single product or geography.

Across Australia, EOS is involved in LAND programs that could translate into multi-year domestic revenue. In the Middle East, follow-on orders and sustainment work are being discussed with existing customers, some with potential contract sizes running into the hundreds of millions.

In Europe and North America, EOS is pushing deeper into vehicle protection, counter-drone systems, and remote weapon stations. Several R400 and R800 opportunities are linked to massive fleet upgrade numbers (+4,000).

Why the laser opportunity could change the scale of EOS

One area that continues to stand out is high-energy laser weapons.

EOS is the only company in the world with a deployable, field-tested laser weapon system that is cleared for export. Management has outlined multiple laser opportunities in the 100kW range across Asia, Europe, and North America.

Some of these programs involve initial evaluation units, while others relate to customers’ re-scoping requirements following real-world testing. Importantly, several of these opportunities carry potential deal sizes in the tens or hundreds of millions, with scope to scale well beyond initial orders if performance milestones are met.

Counter-drone demand isn’t slowing down

Away from lasers, EOS’ core counter-drone business continues to gain momentum.

The key change over the past year has been urgency. Counter-drone capability has shifted from future planning to immediate procurement, particularly in Europe, where initiatives like the “Drone Wall” are driving faster funding decisions.

EOS is well-positioned in this environment, with proven ‘hard-kill’ systems already deployed globally. When procurement timelines tighten, platforms already in service tend to move fastest. These programs also rarely end at delivery, with follow-on orders, upgrades, and sustainment work typically flowing over time.

My take

The recent share price move has been sharp, but in my view, it still understates the opportunity ahead.

With a growing backlog and a diversified pipeline, EOS is entering a new phase of growth. If even part of the pipeline converts, 2026 could be a defining year, and I think EOS trading below $10 may soon be a thing of the past.

The post What’s next on the horizon for EOS? Why I think 2026 could be massive appeared first on The Motley Fool Australia.

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• By December 2026, $1,000 invested in EOS shares could be worth…

Motley Fool contributor Aaron Teboneras owns Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The NEXTDC Ltd (ASX: NXT) share price is in focus today after the company reported strong progress on its contracted utilisation, jumping 30% to reach 412MW following new customer wins. NEXTDC’s pro-forma forward order book also grew significantly, now totalling 301MW.

What did NEXTDC report?

• Contracted utilisation rose by 96MW (30%) to 412MW since 1 December 2025
• Pro-forma forward order book increased to 301MW
• FY26 net revenue, underlying EBITDA and capex guidance remain unchanged
• Forward order book expected to convert into revenue and EBITDA between FY26 and FY29

What else do investors need to know?

NEXTDC’s latest customer contract wins highlight strong demand for its data centre services, underpinning long-term growth potential across Australia and Asia. The company’s expanding forward order book is set to progressively boost billings and revenue streams over several years.

NEXTDC continues to focus on operational excellence and sustainable growth, with its Tier IV certified data centres recognised internationally for efficiency and reliability. Its business remains carbon neutral and at the forefront of energy efficiency in the sector.

What’s next for NEXTDC?

NEXTDC’s unchanged FY26 financial guidance suggests confidence in its growth trajectory, despite a rapidly growing pipeline. With sizeable contracted utilisation and a substantial forward order book, management expects ongoing conversion of these commitments into tangible revenue and earnings over FY26 to FY29.

The company is likely to keep investing in new capacity, innovation, and sustainability as it powers the ever-increasing demand for cloud connectivity and IT infrastructure across the region.

NEXTDC share price snapshot

Over the past 12 months, NextDC shares have declined 22%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post NEXTDC lifts contracted utilisation and order book in December update appeared first on The Motley Fool Australia.

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• Aurizon lodges new 10-year network access undertaking with QCA
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It is fair to say that Boss Energy Ltd (ASX: BOE) shares have been absolutely smashed this year.

In fact, despite a double-digit rebound on Friday, the uranium producer’s shares are down almost 50% year to date.

A good portion of this weakness has been caused by the release of a disappointing update this month which paints a worrying picture of its Honeymoon project’s future.

Is this a buying opportunity or should you be staying clear of this ASX 200 uranium stock? Let’s see what analysts at Bell Potter are saying about its beaten down shares.

Are Boss Energy shares a buy?

Bell Potter notes that Boss Energy’s update on the Honeymoon project was very disappointing. However, it doesn’t believe it is game over, especially given its bullish view of uranium prices.

The broker also believes that the company could become a takeover target given its depressed share price. It explains:

The market was broadly unimpressed by the lack of confidence in the announcement, which was based on high-level software modelling. There is inherent risk in the approach, given that wellfield spacing to such a large distance to our knowledge hasn’t been conducted before. However, that doesn’t mean it is not possible. Details as to the hypothesised strategy may be provided as early as 2QCY26, with a wide-spaced test scenario to be conducted initially on zones north of the Honeymoon domain.

This should provide greater clarity around the potential success of the approach. Should this fail, the likely outcome would be a lower production profile over LOM with higher AISC (which if you’re bullish uranium pricing might not impact the thesis). The selloff has highlighted one possibility. If the market continues to value Honeymoon at a material discount (on our numbers current implied value is ~A$91m), BOE may become a target for groups ISR experience and a longer outlook on uranium pricing.

Big potential returns

According to the note, the broker has retained its buy rating on Boss Energy shares with a heavily reduced price target of $2.00 (from $2.90).

Based on its current share price of $1.32, this implies potential upside of approximately 50% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We lower our TP to $2.00/sh and maintain our Buy recommendation. Our valuation assumes production at Honeymoon over the short 10Y mine life is limited to ~1.6Mlbs pa and costs remain elevated, until such a time that management have completed the work to guide otherwise.

The post Are Boss Energy shares a cheap buy after crashing 50%? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.